National Republican., 1887-03-03
DISTILLED SPIRITS.
Practice of tho Revenue Department
in Regard to Their Importation.

in Regard to Their importation.
Acting Secretary Fairchild has forwarded
to the Senate, in response to Senator AL
drlch's resolution calling for Information ".
regard to the importation OF distilled spirits
bonded for export, two long reports pre-.
pared by the commissioner OF internal
revenue, which, he says, appears to give all
the Information called for. The first is a
letter dated Feb. 2S, and is as follows:
! have the honor to return herewith copy OF
Senate resolution OF Feb. 25 1887, directing the
Secretary of the Treasury to report to the Sen.
ate certain information relating 10 distilled
spirits, In reply TO so much of the resolution
as relates TO spirits bonded for export Bubso-
Quently Withdrawn from warehouse on pay.
ment oftax, have to state
| /. That II is now and has been heretofore
the practice Of this office TO collect any and all
| penalties and interest that have accrued on
| such spirits. As II would seem that some mis-.
| apprehension oxlsts In regard TO this matter
i rest or penalty Is incurred by the non-pay-
ment oftax on distilled spirits III this class OF
| cnses, except where an assessment OF the over.
| due tax hos been made under the provisions
| of section Sls2 of the Revised Statutes, and In
| such cases only where payment OF such as.
| sesscd tax Is delayed beyond the time limited
| by section 3lSi, X. 8. AS rule spirits depos-
tied in distillery warehouses are removed
| therefrom upon payment the tax or for ex'
portaton within tile prescribed time and usu-
such cases no penalty or interest ac-
crue. But when mot 50 removed the tax
with penalty and Interest, II any, Is collected,
| Dnd by distTaint when necessary and without
reference to whether the spirits are covered By
an export bond or a warehousing bond.
Q As already indicated one of the provisions
OF law under which the tax is collected on
spirits bonded for export Is that contained in
said section 1882 Revised Statutes and the
collection made IN such cases appears TO be
| mly warranted and sustained by the cOnstrur
ton placed on the revenue laws by Attorney
General Brewster In his opinion of Dec. %,
1884, ms also by Attorney General Garland III
| his opinion OF Aug 5. 1885. This method Of
collecting by assessment has been rssorted t.
| in cases where the spirits have remained in
warehouse beyond the period limited In the
| export bond But In cases where the declared
intention to report has been abandoned and
the tax on the spirits voluntarily rendered no
assessment has been made for very obvious
reasons, and the spirits In such cases have
been regarded and treated as coming within
the general provisions OF the statutes section
32bl Revised Statutes act of MARCH 3, los5, act
| of May 20, 1850, &o.), and execution has been
made accordingly. Upon payment of the tax
due in either.case named satisfaction has been
entered on the export bond, and this mode OF
| procedure has been adopted In place of insti-
tuiing snit on the bond for the recovery of the
tax, and In order 70 avoid needless litigation
and delay and possible loss OF the government
In no instance, however has the export bond
been surrendered TO the signers, and all such
bonds, with the memoranda of credtsannexed
thereto, are now on the files @ Of this office. =
called to the subject Of expectation and re-
importation of domestic spirits in connection
with certain alleged fraudulent practices
referred TO In the letters of Mr. A. Il. Carman
on the subject addressed to the department
under dates OF Sept % and Oct. 20 last.
The statement made by Mr.. Carman in thesC
communications were at your request care
fully considered at the time, and a report Is
now submitted for your consideration in con
nection with this letter.
The second report is document Of owe
100 pages Of foolscap, and reviews ever,
action Of the department bearing on th,
question, together with the authority 70
so doing. 1t also refers at length to th
J charges made by Mr.. Carman of allegc
fraudulent practices in connection wi
the expectation and reimportation OF {
mestic spirits, and shows that they we
without foundation.